Existing Business with Bad Credit

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A secured credit card can be the ideal way to get your business back on its feet if you have had financial problems in the past.

Regardless of the nature of your business, it is almost impossible to get by without some kind of credit card. The number of cut price services available online that will only accept this form of payment have made it an essential modern-day tool for every small business.

This is where the secured credit card can prove to be a real lifesaver. Regardless of the credit rating of the owner or the business itself, the lender who issues a secured credit card knows their money is guaranteed because they are always holding sufficient collateral to cover whatever has been spent. The disadvantage is that cards tend to be somewhat more expensive, attracting higher interest rates for purchases and higher annual fees than other non-secured credit cards.

You will only ever be able to borrow as much as you are able to deposit, so your credit limit really depends on how much ‘spare’ cash you are able to obtain. The more cash you have, the higher you limit will be. Without the ability to pay such a deposit, you are unlikely to find a card issuer who will deal with you.

Although the cost may be higher at the start, this does not have to be the case forever. Some companies will allow you to convert your account into the regular unsecured kind after a certain amount of time, refunding your deposit and even lowering your interest rates at the same time.

Although there is a price to pay, small business secured credit cards also carry a number of benefits that can offset some of these costs. These can include extended warranties on certain items of business equipment, free travel insurance and free insurance when renting certain cards.  Depending on the nature of your small business, such benefits can easily compensate for the increased cost of the card in the first place.

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Breaking Down the Elements of Student Loan Consolidation

Being troubled by a number of loans that require immediate repayment? If yes, then maybe it is about time that you look into simplifying your finances and start placing all of your loans under the care of a single lender. Merging all of your loans under a private student loan consolidation plan simply means eliminating the burden of having to keep track of different payment dates, interest fees and monthly dues.

Aside from the federal government, a number of private lenders also offer loan consolidation as part of their financial services, which specifically target new graduates entering the professional world who are starting to pay off their student loans. Though attractive as it may seem, financial experts still stress the importance of conducting a thorough evaluation of your current finances, as well as assessing the important factors involved in combining all of your loans before jumping on board.

Interest Rates

As with any other kinds of loans, one of the first items you need to focus on will be the interest rates, as these have a significant effect when it comes to repaying your loan. In loan consolidation, one of the most important aspects you need to determine is whether you are getting it from the federal government or a private lender. In the general scheme of things, federal loans offer a superior package due to their interest rates ranging from 2 to 3.5 percent. However, not everyone can make use of this option of consolidation. Experts advise looking into both avenues and identifying which type works best for your needs.

Credit History

Building an excellent credit score can also help you acquire a much more lower interest rate for your consolidated loan. Your individual credit rating is carefully factored in on your loan so it is best to wait til you have an impressive record before getting your loans consolidated. Though some federal loans such as the Stafford loan look past the credit rating and determines your viability based on your needs and capacity to repay your loan, having a good credit score will never hurt your credit and repayment options.

Originating Fee

In combining all of your loans under a consolidated program, another item factor in is your originating fee and the accompanying charges on your loan. Private companies are often more adaptable to giving reduced closing fees to earn your business from their competition.

Grace Period and Penalties

Another element of your loan that should be carefully considered the given grace period for late payments as well as penalty charges on missed payments or early pay off. These are often hidden fees that can make the initially most appealing loan become the most expensive in the long run.

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